Productivity standards

An employer is entitled to impose productivity standards for its employees, and the latter's non-compliance therewith can lead to his termination from work.

1. Concept

An employer is entitled to impose productivity standards for its employees, and the latter's non-compliance therewith can lead to his termination from work. (Puncia v. Toyota Shaw/Pasig, Inc., G.R. No. 214399, 28 June 2016)

An employer is entitled to impose productivity standards for its workers, and in fact, non-compliance may be visited with a penalty even more severe than demotion. Thus, the practice of a company in laying off workers because they failed to make the work quota has been recognized in this jurisdiction (Leonardo v. NLRC, Reynaldo’s Marketing Corporation, G.R. Nos. 125303, 126937, 16 June 2000)

Leonardo v. NLRC, Reynaldo’s Marketing Corporation, G.R. Nos. 125303, 126937, 16 June 2000

⦁ The employees’ failure to meet the sales quota assigned to each of them constitute a just cause of their dismissal, regardless of the permanent or probationary status of their employment. Failure to observe prescribed standards of work, or to fulfill reasonable work assignments due to inefficiency may c...